High food inflation and incomplete transmission of the 250 basis point policy rate hikes since May 2022 could delay the Reserve Bank of India’s (RBI) rate cut. Transmission through loan and deposit rates varied between 111 and 245 bps until May 2024, except for loans linked to external benchmarks, which had immediate full transmission.
Market Trading Guide: YES Bank among two stock picks for Monday with up to 10% upside scope
Equity markets saw broad-based selling pressure after weak monsoon forecasts raised concerns over food inflation, though falling crude oil prices and easing bond yields helped